International Breweries Shareholders Endorse $379.9 Million Loan-To-Equity Conversion

It has been reported that International Breweries' majority shareholder, AB InBev Nigeria Holdings BV, has accepted a $379.9 million loan from the company's shareholders to help it repay a loan it received from Citibank Abu Dhabi.

In addition, the shareholders of International Breweries' authorised the conversion of the loan to equity in the company's upcoming rights issue at its recently held Extraordinary General Meeting, whose resolutions were submitted to the Nigerian Exchange Limited.

Part of the resolutions read, "Approval of Shareholders Loan: That the convertible loan of $379.9m from AB InBEV Nigeria Holdings BV ('Shareholder Loan") in respect of the repayment of the loan obtained by the Company from Citibank Abu Dhabi is hereby accepted and approved in accordance with the terms and conditions presented by the Management of the Company.

"Conversion of the loan to equity: That subject to complying with applicable regulatory requirements, the Directors are authorized to apply all sums due from the Company to AB InBev Nigeria Holdings BV under the Shareholders Loan, towards payment for any shares subscribed for by AB InBev Nigeria Holdings BV in the company's Right Issue that the Shareholders of the Company have approved."

Related News:

• International Breweries Shareholders Approves Company's Planned Right Issue

• International Breweries Plc Reports Loss of N70 Billion for 2023 FY

• International Breweries Plc Seeks Approval for $379.9 Million

Previously, the company's shareholders approved International Breweries' planned rights issue.

In January, the board of directors of International Breweries announced that it was considering raising capital through a rights issue and increasing shares.

As of December 2023, the International Breweries issued share capital stood at 26,862,069,000 ordinary shares of 50 kobo each.

It was also stated that Brauhaase International Management GMBH and its ultimate holding company (AB InBev Nigeria Holding BV) held an equity interest of 87.29%.

In its audited results for 2023, IB Plc reported an increase in revenue from N218.65 billion at the end of 2022 to N260.59 billion. However, it suffered a loss of about N70.03bn due to foreign exchange losses (realised and unrealised).

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Back Story

It was reported that after the Central Bank of Nigeria unified the foreign exchange market, International Breweries Plc reported a loss of N70.03 billion for fiscal year 2023, up from N21.63 billion the previous year.

For the 2023 fiscal year, International Breweries announced a N55.98 billion net foreign loss, compared with the N5.11 billion net foreign exchange loss in 2022.

International Breweries revealed that, compared to N8.36 billion realised and reported in 2022, a net foreign exchange loss of N14.4 billion was realised in 2023.